Japan’s Three Megabanks Plan Stablecoin Transactions in FY2026

Highlights:

• Japan’s three largest banks plan to use a jointly issued stablecoin in business transactions.
• The banks formed a council to study rules, systems, governance, and issuance infrastructure.
• The project follows an FSA-backed experiment and targets real commercial use in fiscal 2026.

Japan’s three largest banks are preparing to bring stablecoins into real-world business payments. MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation (SMBC) announced Wednesday that they plan to use a jointly issued stablecoin in actual corporate transactions during fiscal year 2026.

The banks said they aim to conduct actual commercial transactions using a stablecoin they call the “Subject Stablecoin.” They will issue it under a trust agreement. Under this structure, the three banks will act as joint settlors, while a trust bank or a similar institution will act as trustee.

$7T Japanese Banking Giants Unite For Stablecoin Push

Japan's three largest banks are planning a joint stablecoin launch by 2027, per Nikkei.

Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho manage more than $7 trillion in combined assets.

The initiative follows a pilot conducted… pic.twitter.com/1y04a7pF7p

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Three Banks Form Council for Stablecoin Project

MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation have signed a memorandum of understanding to establish a voluntary council. The council will study the practical steps needed before the banks launch live stablecoin transactions.

The banks said the council will examine operational frameworks, governance, and other related matters. It will also study the systems, schemes, and rules needed to support the stablecoin’s practical use. The council will review the possible development of issuance infrastructure for the stablecoin. Issuance infrastructure refers to the technical and legal setup required to create, manage, and use the stablecoin safely.

The banks will also consider relevant laws, regulations, and market trends while preparing the project. They said the council may also explore cooperation with other financial institutions and relevant stakeholders that could join the initiative later. The press release did not name specific companies, industries, currencies, or first transaction partners. It also did not confirm whether the stablecoin will be linked to the Japanese yen, the U.S. dollar, or another asset.

However, the banks clearly stated that they want to move beyond discussion and testing. Their goal is to use the stablecoin in actual commercial transactions, not only in internal trials. For businesses, stablecoins can support faster settlement and more flexible payment systems. A regulated bank-led structure may also make the technology easier for large companies and financial institutions to trust.

Project Follows FSA-Backed Demonstration Experiment

The stablecoin plan builds on earlier work by the same three banks. According to the press release, they have been holding joint discussions to issue the stablecoin through a demonstration experiment.

Japan’s Financial Services Agency (FSA) selected that experiment last November as a supported project under its “FinTech Proof-of-Concept Hub.” The program supports testing of financial technology ideas under regulatory discussion.

The banks said they are studying blockchain technology to improve payment systems in Japan and overseas. They also named tokenized deposits and stablecoins as examples of new financial tools that banks are now exploring. The announcement does not give a final launch date beyond fiscal year 2026. However, it shows that Japan’s largest banking groups are preparing a regulated path for stablecoins in real business payments.

The move comes as Japanese banks are expanding their crypto-related services. SBI Shinsei Bank also launched a pilot program allowing deposit customers to receive part of their interest as rewards in Bitcoin, Ether, or XRP through SBI VC Trade.

LATEST: 🇯🇵 SBI Shinsei Bank plans to offer deposit customers crypto exchange vouchers worth 20% of their interest payments, redeemable for Bitcoin, Ethereum or XRP. pic.twitter.com/UnSb2iKX0K

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